Infosys BPO, Finacle gain strength

Infosys BPO has gained further strength by posting a topline of $33.8 million for the second quarter of FY07, a 16 per cent sequential increase. Operating margins at 23 per cent is among the best in the Indian business process outsourcing (BPO) sector.

This business line, which Infosys terms as business process management, added three new clients, taking up the count to 24. Infosys BPO hired a little more than 2,200 people during the second quarter with attrition rate at 38 per cent. The company is also expected to set up a centre in Latin America.

"We added one of the world's largest telecom carriers and a leading US-based global provider of property, casualty and speciality insurance as our clients during the quarter," noted a spokesperson of Infosys BPO.

Further, Infosys banking product Finacle has reported 50 per cent growth in sales to touch $27.7 million for the second quarter as against $18 million it reported in corresponding quarter of the previous financial year. Finacle secured three new clients during the quarter taking up total implementations to 86. Close to 50 per cent of installations have been in the Asia-Pacific region, a spokesperson for Finacle said.

According to Infosys, it registered key wins in West Asia, Africa and South Asia including two banks in Nigeria and another in Bangladesh. Finacle was rolled out at DBS Bank's Indian operations, HPB in Croatia and Dunbar Bank, a part of Zurich Financial Services, UK. Two Indian banks, UCO Bank and Bank of Baroda, also went live on Finacle during the quarter.

While this presents a rosy picture, Infosys Consulting and its China operations continue to bleed. The consulting business posted a topline of $11.64 million losing $3.7 million. Infosys expects this division to be profitable in 2-3 quarters.

"Infosys Consulting added nine new clients including an asset maintenance and servicing company in Australia and a recognised market leader in smartphones, handhelds, software and accessories in North America," said S Gopalakrishnan, COO, president & MD, Infosys.

The company also admitted that its China operations are lagging behind and expected to be in the investment mode next year. "We have detailed discussion with our clients on delivering certain work from China and they are a bit apprehensive about the IPR situation there. This is holding us back in terms of our global business," said S D Shibulal, group head (worldwide sales and customer delivery).

On the other hand, he added that the company is starting to have some decent presence in the local market. "We have bagged our first million dollar contract recently and we will continue to invest there," he added.